Key Points
- MicroStrategy has acquired an additional 7,420 bitcoins for $458.2 million, increasing its total holdings to 252,220 BTC valued at approximately $15.8 billion.
- The company completed a $1.01 billion upsized convertible notes offering, using part of the proceeds to redeem existing notes and acquire more bitcoin.
Latest Bitcoin Acquisition
Business intelligence firm MicroStrategy has once again bolstered its position as a major corporate bitcoin holder. According to an SEC filing on Friday, the company purchased 7,420 BTC between September 13 and September 19, 2024, for approximately $458.2 million. This acquisition was made at an average price of $61,750 per bitcoin.
With this latest purchase, MicroStrategy’s total bitcoin holdings have grown to 252,220 BTC. At current market prices, this stockpile is valued at roughly $15.8 billion. The company’s founder and executive chairman, Michael Saylor, reported that their total bitcoin investment, including fees and expenses, amounts to about $9.9 billion, with an average purchase price of $39,266 per bitcoin.
Financing Strategy and Debt Management
The recent bitcoin acquisition follows MicroStrategy’s completion of a significant financial maneuver. On the same day as the SEC filing, the company announced the successful closure of an upsized $1.01 billion private offering of convertible senior notes due in 2028. These notes carry a 0.625% coupon and a 40% conversion premium.
MicroStrategy plans to use a portion of the proceeds from this offering to fully redeem its $500 million senior secured notes due in 2028. This redemption is expected to be completed by September 26, 2024. Upon redemption, the collateral securing these notes, which includes approximately 69,080 BTC valued at $4.4 billion, will be released.
The company stated that the remaining balance of the net proceeds would be used to acquire additional bitcoin and for general corporate purposes. This strategy aligns with MicroStrategy’s ongoing commitment to bitcoin as a primary reserve asset.
Market Impact and Performance
Despite the significant bitcoin purchase, MicroStrategy’s share price remained relatively stable in pre-market trading on Friday, showing only a slight decrease of 0.3% at $144.26. However, the stock has shown strong performance over longer periods, with a 3.5% increase over the past month and an impressive 108.9% gain year-to-date.
MicroStrategy’s continued investment in bitcoin underscores its confidence in the cryptocurrency as a long-term store of value and highlights the growing trend of corporate adoption of digital assets.
